1. ECONOMIC
ACTIVITY

2. Word
What you think it is
What the dictionary says it is
Economy
Administration or use of resources which satisfy the needs and wants of individuals and groups
Labour force
Number of individuals in an economy who either are employed or are seeking employment.
Public limited company or corporation
A company whose securities are traded on a stock exchange and can be bought and sold by anyone.
Welfare state
A social system in which a government is responsible for the economic and social welfare of its citizens and has policies to provide free health care, money for people without jobs…
Neoliberalism
Economic theory that defends to transfer the control of economic factors to the private sector from the public sector.

3. THE ECONOMY
We do activities related to the the economy every day…

4. The economy is responsible for the administration or use of resources which satisfy the needs and wants of individuals and groups

5. -You can buy and sell them
People produce economic goods to satisfy their needs and wants, such as…
They are:
-Limited
-You can buy and sell them
They have a price
PRODUCTS or GOODS
SERVICES

6. The story of a product: components of economic activity
DISTRIBUTION
CONSUMPTION
PRODUCTION
What is the difference between goods and services?

7. What do we need to produce something?
1: Natural resources (rocks, metals, fuels, land, animals, etc)
4: Financial capital (money)
5: Physical capital (buildings, vehicles, machinery, etc.)
2: Technology (inventions)
6: Human capital (employees)
3: Labour (work, wages, etc.)

8. ECONOMIC SECTORS

9. ECONOMIC AGENTS AND THEIR RELATIONSHIP:
Read 1.3 «Economic agents» pg 7
TPS. On the next diagram change each word for another or an example

10. HUMAN RESOURCES (Labour) CAPITAL (includes technology)
ECONOMIC ACTIVITIES
FACTORS OF PRODUCTION
NATURAL RESOURCES
HUMAN RESOURCES (Labour)
CAPITAL (includes technology)
GOODS

11. 3. The primary sector
Economic activities devoted to obtaining resources directly from nature.
Agrarian space
- Agrarian space: land where agrarian activities are undertaken
- Rural space: non – urban areas
The majority of activities in the primary sector are agrarian and include agriculture (cultivation of land to obtain food, feed for livestock and raw materials for industry), livestock farming and silviculture or forestry (is concerned with the use of woodland).

12. 4. The secondary sector
The secondary sector
- Industry is the activity that transforms raw materials into manufactured products.
Industry requires raw materials, energy sources (provide the force) and production factors (employees, capital, machinery, technology…)

13. Mining is the process of extracting rocks and minerals from the ground
Mining is the process of extracting rocks and minerals from the ground. Mining uses prospecting methods to locate minerals, extraction techniques (open cast mines or subterranean mines) and refining systems

14. Energy production transforms energy sources into heat and electricity that allow industrial work to be undertaken
The construction industry creates buildings and infrastructure
Print out a map of Spain and using the information you have in your book locate the main activities related to the primary and the secondary sector (pg 10-12)

15. Unit 5. The tertiary sector.
The tertiary sector brings together activities that provide services to people or to other sectors of the economy.
The most important services are: transport, trade, education, health and communications

16. According to whom delivers them can be:
Public services are provide by the state using money collected from taxes to contribute to social welfare.
Private services are delivered by private companies using money paid by those who demand the service.

17. THE USE OF NATURAL RESOURCES
HOMEWORK: Do an outline of pg 16 and 17 and answer activities 18 and 20.

18. ECONOMIC SYSTEMS TYPES
DEFINITION: It is the way in which a society organises its economy
TYPES
MIXED ECONOMY:
The state takes actions that affect the economy
CAPITALIST SYSTEM OR MARKET ECONOMY:
Businesses and consumers control the economy with limited involvement by the state
PLANNED OR SOCIALIST ECONOMY:
The state controls the factors of production and how the economy works

19. 2. Economic systems
They are the different ways of organizing economic activity. Three basic problems must be addressed: what goods to produce, how should goods be produce and for whom will goods be produce. How a country answers this questions determines what type of economic system it has.

20. Market based on the law of the supply and demand
Capitalist economy
CHARACTERISTICS
Private Property
Search of Profit
Market based on the law of the supply and demand

21. The capitalist system
- In the capitalist system, economic activity is regulated by the market which is why it is also know as the market economy.

22. - The market is governed by the law of supply and demand
- The market is governed by the law of supply and demand. Supply is the amount of goods and services on sale and demand is the willingness to buy goods or services.
Prices rise if supply is less than the level of demand. In the opposite case, prices fall.
We have 5 houses and 20 buyers ¿what represents demand and supply? ¿what is going to happen with the prices?
We have 100 houses and 10 buyers ¿what is going to happen with the prices?

23. The market determines what, how and for whom.
What to produce is determined by the demand of goods and services.
How to produce is determined by businesses seeking profits (they achieve the highest economic profit)
For whom to produce is determined by purchasing power, so products are produced for those who can pay for them.

24. Other principles of the capitalist system are:
Private property
Free competition between companies and the search for individual profit.
The capitalist system has been adopted by the majority of the world's countries.

25. The capitalist systems represent a variety of ideologies, which vary in terms of their degree of economic liberalization and the extent of state intervention in the economy.
Neoliberal ideologies
Keynesian ideologies (Keynes).

26. b) The socialist system
In the socialist system, economic activity is regulated by the State, which is why it is also known as planned economy. Companies are owned by the State.
The State decides what to produce and how to produce it and sets product prices and workers salaries. The State achieves social equality so the goal is to produce for everybody.

27. - Today, only survives in China, Cuba, Vietnam, Laos and North Korea
- Today, only survives in China, Cuba, Vietnam, Laos and North Korea. In recent years, some of these countries have also introduced private initiatives.

28. c) Mixed systems
- Mixed systems combine a market economy with greater or lesser State economic intervention. Although market prices result in products only being for those that can afford them, State intervention guarantees that the basic needs of all citizens are provided for.

29. - State economic intervention is known as the welfare state: public health care and education, minimum wage, public housing, pensions, public transport...
- Other principles: private property and enterprises, public enterprises and measures to redistribute wealth (public services, progressive taxes…)

30. - Mixed systems operate in many countries in the world, especially in Europe.

31. The problems of capitalism

32. SUBSISTANCE
PLANNED
MARKET
MIXED
An economic system heavily influenced by habits, customs and religious beliefs.
Governments directly influences and controls bussineses practiced due to ownership of natural and capital resources
Privetly owned factors of production
Prices are influenced by supply and demand
Very low unemployment rate
Considered synonimous with a capitalistic economy
Individual freedom is limited (roles of individuals are static from generation to generation)
Considered synonimous with a socialist economy
Minimal government involvement in business transactions

33. Free trade zones remove tariffs on products they buy from other member countries, but each member state applies its own economic policy

34. FREE TRADE ZONES: North American Free Trade Agreement
The goal of NAFTA was to eliminate barriers to trade and investment between the U.S., Canada and Mexico.

35. COMMON MARKETS:
Remove tariffs
Allow the free movement of people and capital
Adopt a common economic policy towards other states
EUROPEAN UNION

36. Worldwide geo-economics areas:
The triad: EEUU and Canada, EU and Japan.
Emerging economic powers: BRICS
Underdeveloped areas

37. CONSOLIDATION: Pg: 20 act. 29, 32
P: 21 act. 40